You asked: Separated in NJ, no written agreement. He voluntarily pays support. Am I required to pay taxes on that money?Additional Details:I live in NJ and have been separated for 2 years. He lives outside the home and kids live with me 100%, no over nights with him. No signed agreement of any kind and haven''t filed for divorce yet. Based on our salaries, he has been voluntarily paying the equivalent of 3/4 of the bills, which amounts to the mortgage payment and 4 utility bills. The mortgage he pays out of his bank account and deposits a portion into the joint account for the bills. We jointly own the house. If we file separate taxes, can he make me claim the 3/4 he pays as support, requiring me to pay taxes on it? Also, if he takes the mortgage, tax and child deductions, will I be giving up any rights to the house once the divorce process starts?
I am a Michigan attorney, and cannot advise you regarding New Jersey law; however, I may be able to offer some guidance. If you are married, and he pays certain bills and provides you funds, he is merely sharing marital assets with you, which would not normally be a taxable event. In order for this money to be taxable to you, you would normally need a court order providing for alimony and having it state that the money is taxable to you and deductible to him. Normally, property division results from an agreement of the parties. If the Court is required to make the decision, it considers many factors, only one of which is the identity of the payor.
I strongly recommend that you contact a local accountant regarding the tax issue and a local attorney to discuss divorce issues in order to know all of your options.
Stu Shafer
Answered on Apr 14th, 2012 at 5:56 PM